Asian shares mixed, capped by weak China data
HONG KONG—Asian markets were mixed Thursday as a surprise trade surplus from Japan was offset by more weak data out of China, adding to concerns over a slowdown in the world’s second-largest economy.
The latest batch of downbeat news from Beijing initially sent shares into negative territory but most markets staged an afternoon rally, with bargain buying providing the impetus.
Tokyo closed 0.40 percent, or 40.59 points, higher at 10,127.08 and Sydney added 0.46 percent, or 19.4 points, to 4,273.7 while Hong Kong gained 0.22 percent, or 44.93 points, to 20,901.56.
Shanghai closed 0.10 percent down, shedding 2.43 points to 2,375.77 and Seoul was flat, edging down 1.11 points to 2,026.12.
Japan on Thursday said it had logged a trade surplus in February, largely thanks to a recovering auto industry and a tentative US recovery.
February’s surplus of 32.9 billion yen ($394 million) was the first in five months and beat forecasts of a 110 billion yen deficit, according to a poll by Dow Jones Newswires and the Nikkei business daily.
“The declining trend for exports has apparently been arrested,” said Takahide Kiuchi, chief economist at Nomura Securities.
“The turnaround shows that the global economy, especially in the United States and Europe, is not as bad as feared,” he said.
However, the news was tempered later after HSBC’s preliminary Purchasing Managers’ Index (PMI) showed China’s manufacturing activity contracted for the fifth straight month in March.
The PMI fell to 48.1 compared with a final reading of 49.6 in February, HSBC said. A reading above 50 indicates the sector is expanding while a reading below 50 suggests a contraction.
The figures will fuel fears that China’s economy is losing its strength after a string of negative data including a trade deficit.
Beijing’s decision to target growth of 7.5 percent this year – below eight percent for the first time since 2004 – has also added to weak sentiment.
The export-dependent economy has come under severe strain as key markets in the United States and Europe struggle to get back on track.
“Concerns about the strength of the Chinese economy certainly seem to have knocked some of the wind out of the market’s sails,” Mike Jones, Wellington-based currency strategist at BNZ said in a note, according to Dow Jones Newswires.
Wall Street was broadly lower after the National Association of Realtors reported sales of previously owned homes, the biggest segment of the depressed US housing market, dipped 0.9 percent in February.
The Dow fell 0.35 percent, the S&P 500 lost 0.19 percent and the tech-rich Nasdaq Composite was flat.
On forex markets risk aversion combined with the strong Japanese data lifted the yen after a recent downward trend.
The dollar slipped to 82.80 yen in early European trade, from 83.87 yen in New York late Wednesday, while the euro tumbled to 108.95 yen, compared with 110.22 yen.
The European unit was changing hands at $1.3156 compared with $1.3211.
The euro lost some ground in Europe and New York after debt jitters returned with news that the cost of borrowing for Spain and Italy had edged up.
Crude markets eased slightly after France said industrialized nations were considering a plan to release part of their stockpiles to fight rising prices.
The announcement, which comes amid rising tensions with key producer Iran, followed reassurance from Saudi Arabia that it would provide enough supplies to keep costs in check.
New York’s main contract, West Texas Intermediate crude for delivery in May, shed $1.04 cents to $106.23 per barrel while Brent North Sea crude for May was down 80 cents at $123.40.
Gold was at $1,639.05 an ounce at 1045 GMT, compared with $1,655.92 late Wednesday.
In other markets:
— Singapore closed down 0.88 percent, or 26.38 points, at 2,979.25.
Shipping line Neptune Orient Lines was down 1.08 percent at Sg$1.37 while Oversea-Chinese Banking Corp. shed 0.56 percent to Sg$8.91.
— Taipei added 0.98 percent, or 78.00 points, to 8,059.94.
Hon Hai rose 2.44 percent to Tw$105.0 while TSMC was 0.35 percent higher at Tw$85.2.
— Manila closed 0.11 percent, or 5.58 points, up at 5,043.52.
Philippine Long Distance Telephone Co. gained 0.23 percent to 2,600 pesos while Alliance Global Group rose 0.77 percent to 13 pesos.
— Wellington fell 0.21 percent, or 7.30 points, to 3,474.65.
Telecom slipped 1.24 percent to NZ$2.385 and Fletcher Building rose 0.87 percent to NZ$6.95.
— Kuala Lumpur was flat, dipping 0.71 points to 1,583.24.
Utility Tenaga Nasional gained 1.98 percent to 6.71 ringgit, while Malayan Banking added 0.34 percent to 8.77 ringgit and telecom firm Axiata Group lost 0.19 percent to 5.14 ringgit.
— Jakarta rose 0.13 percent, or 5.33 points, at 4,041.56.
Bank Rakyat rose 0.7 percent to 6,800 rupiah and car maker Astra jumped 0.8 percent to 72,200 rupiah.
— Bangkok fell 1.38 percent, or 16.67 points, to 1,191.
— Mumbai fell 2.30 percent, or 405.24 points, to 17,196.47.
